Institutions held Bitcoin through 50% crypto drawdown, Bitwise finds
In brief
- All 15 institutions held Bitcoin as largest, longest-held crypto asset.
- None cut allocations during 50% drawdown; several increased positions.
- Bitcoin viewed as store of value; Ether and Solana are smaller tactical bets.
- Crypto allocations ranged 0.5% to 13% of investable assets, mostly 1–2%.
- Nearly all institutions used or planned spot crypto ETFs over private placements.
Bitcoin as foundation
All 15 institutions interviewed that owned crypto held Bitcoin, usually as their largest asset. For almost all Bitcoin holders, it was their first, largest and longest-held crypto asset. Most treated Bitcoin as a store of value, often alongside gold.
The conviction was tested. None of the 15 institutions cut their crypto allocations during the roughly 50% market drawdown. Some went the opposite direction. Several bought more crypto during the market drawdown.
When asked what could trigger a sale, none of the institutions cited falling prices as a reason to sell crypto. Instead, institutions pointed to regulatory reversal, industry-wide credibility crisis, or failure of investment thesis as reasons to sell.
Ether and Solana: smaller bets, shorter horizons
Bitcoin's dominance in institutional portfolios contrasts sharply with how institutions view other assets. Ether and Solana were smaller bets with shorter investment horizons and conditions for selling. Conviction around Ether and Solana was less consistent than around Bitcoin.
Some institutions said they would sell Ether or Solana if growth in network use failed to benefit the tokens. Several institutions said they could exit Ether or Solana over the next few years if growth in stablecoins, decentralized finance and tokenization failed to translate into value accruing to the assets. The distinction matters: one institution that held neither Ether nor Solana had used DeFi applications extensively but saw no clear way that activity would benefit the underlying tokens.
Allocation sizes and infrastructure shifts
Crypto allocations among institutions with exposure ranged from 0.5% to 13% of investable assets, though most were between 1% and 2%. These are measured positions, not core bets. But the infrastructure through which they hold crypto is shifting. Almost every institution interviewed either used spot crypto exchange-traded funds or planned to. Some investors shifted from private placements or direct custody toward ETFs. The trend reflects both regulatory comfort and operational simplicity.
